RESILIENCE — CHECK. Reinforcing values — Check. Sustainable and inclusive growth — Check. Nidhu Saxena, MD and CEO of Bank of Maharashtra, is a happy man as he checks off the boxes that powered the bank’s performance during the 2024-25 fiscal.

“The past year has been a defining period for us,” Saxena tells Fortune India. The future? Finding new strength in old values and leveraging innovation and inclusivity to drive growth. It will step into every major district that shows promising growth.

Saxena, sent in from Union Bank to head Bank of Maharashtra in March 2024, says the lender’s journey out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework from 2017 to 2019 revealed its inherent character and capability. How the bank attracted RBI’s PCA is another story.

The journey back was hard. “Those years of challenge were instrumental in shaping the bank’s current trajectory. We faced negative returns on assets, asset-quality pressures, and the twin balance sheet stress in the economy. But that phase made us stronger and more disciplined,” he says. The bank learnt to rebuild its fundamentals, strengthen governance, and focus on sustainable growth.

Bank of Maharashtra, a medium-sized bank, reported a total income of ₹28,424 crore in FY25. Profit after tax was ₹5,542 crore, a strong three-year annual growth rate of 68.7%, according to Capitaline data. Over the past three years, its income has grown at an average annual rate of 21.9%. Investors have also seen good returns, with the bank’s three-year average total shareholder return at 57%. The government holds 79.6%, while the public, FIIs and others hold the rest.

The bank’s share price was ₹59.04 on October 31, 2025, giving it a market capitalisation of ₹45,410.94 crore. The P/E ratio was 7.46. The year began with some fluctuations between ₹45 and ₹50, followed by a steady upward movement from May, supported by improved quarterly performance and investor confidence in the bank’s expanding loan book and asset quality.

The bank got a boost when it decided to prioritise RAM (retail, agriculture, and MSME) over big industry. “This shift helped us achieve stability in earnings and reduce concentration risks from large corporate exposures,” Saxena says. “Today, we allocate a larger share of our portfolio to RAM segments, while maintaining a prudent exposure to corporates.” These structural reforms, supported by efficient liability mobilisation and better risk management systems, have improved both profitability and operational efficiency.

The capital adequacy ratio (CAR) under Basel III norms was 17.26%, with a CET-1 ratio of 11.97%. Deposits reached ₹30.98 lakh crore, and advances ₹25.02 lakh crore. The bank reported 178 fraud cases worth ₹155.08 crore, which were fully provided for, and paid a ₹0.35 crore penalty to RBI.

The transformation has been cultural as well. “We have embedded a sense of accountability and ethical conduct across all functions,” he says. “Our motto, ‘Business First, Compliance Always,’ captures the essence of how we operate. We want growth that is responsible and disciplined.” This emphasis on governance, he notes, has helped the bank create a culture that values integrity as much as innovation.

The bank has maintained momentum despite a challenging macroeconomic backdrop. “As of September, our total business was ₹5,63,987 crore, growing 14.22% YoY,” he says. “Credit grew by 16.87% YoY, supported by a CASA ratio of 50.35%.” Its CASA ratio is among the highest for public sector banks. A high CASA ratio implies a low cost of funds; anything above 40% is good. The gross NPA ratio has dropped to 1.74%, and net NPA to just 0.18% — among the lowest in the sector. “These figures reflect disciplined lending and sound provisioning,” Saxena explains.

Several reforms contributed to this performance. “We redesigned our lending models for the RAM segments, adopted better underwriting practices, and strengthened our presence in the home market,” says Saxena. “Our education loans for premier institutions, MSME support schemes, and agricultural advances reflect our long-term commitment to inclusive development.” He believes that diversifying revenue sources is key to stability. “With narrowing NIM due to policy rate cuts, we are enhancing fee-based income through cross-selling insurance, mutual funds, and cards.”

The bank crossed another milestone by setting up a unit at GIFT City. “It positions us to tap cross-border financial flows and serve global clients while complementing our domestic operations,” he says. The bank’s investor engagements and capital-raising initiatives have drawn strong responses, reflecting market confidence in its fundamentals.

For Saxena, true transformation also depends on people. “No institution can thrive without investing in its people,” he says. “We have brought in new talent, modernised workspaces, and enhanced employee welfare.” He believes that the spirit of teamwork and pride among employees is what drives the bank forward. Saxena is clear about digital transformation. “We launched Zen Lyfe, our flagship lifestyle and mobile banking app, as part of our ambition to go beyond traditional banking,” he says. “It is about creating experiences, not just transactions.”

The bank plans to open 1,000 branches in five years. “Under Project 321, we are already rolling out 321 branches across high-potential centres,” he says. He adds that the focus is on enhancing the net interest margin (NIM), optimising capital efficiency, and deepening digital capabilities. Resilience and adaptability have been the most valuable lessons learned from the past year. The bank’s NIM was 3.78%, supported by efficient asset-liability management and credit growth. The gross NPA ratio was 1.74%, and the net NPA ratio was 0.18%, reflecting strong asset quality. The Provision Coverage Ratio remained high at 98.34%. The lender is using data and expert insights to locate new branches in high-potential areas. “In the last financial year, we opened 120 branches, and 62 more in the first half of this year,” he notes.

For Saxena, the story of Bank of Maharashtra is about evolving with purpose. “We aspire to become a bank of greater significance — not just in scale, but in the impact and purpose, that is, the difference we make to people’s lives,” he says.